Ethical Dilemma in Marketing

8/6/2019 Ethical Dilemma in Marketing

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Prepared by

Lijo JacobNikhil UppalPriyanka Sharma

SachinShubhodip DasTennisson Jomy


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ObjectiveTo analyze various ethical challenges faced by marketing professionals in their day-day activities

through a case study.


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Preface to the casey This case involves two employees of Marigold Inn, a

subsidiary of Hospitality services.

y The Food Service Manager who is facing decliningroom service business and her General Manager. Thefood service manager in order to improve the decliningroom service business submits a proposal to her

General manager. This proposal is punctuated withvarious ethical issues which would be made apparentin the further slides


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Case Abstracty Food service manager of Marigold inn notices a

decline in room service business, the major

contributor to the margins.y In order to address this, the manager starts pizza

service(Napoli Pizza) as a part of the room servicebecause she noticed that the decrease in room service

business was accompanied by an increase inconsumption of pizza from external pizza deliveryoutlets.


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Case Abstract continuedy The new pizza addition to the room service did not

increase the room service substantially

y The primary reason for this trend was that thecustomers perceived Marigold as an authentic steaksand seafood eatery not capable of producing qualitypizza.


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The Current Proposal from the

Food Service Managery Preparing Napoli Pizza brochures for each guest room,

complete with a phone number with a prefix different fromthat of Marigold Inn. The number will reach a special

phone in room service, which will be answered, NapoliPizza, authentic Italian pizza from old, family recipes.

y Using special Napoli Pizza boxes for delivering roomservice pizza to guests.

y Issuing Napoli Pizza hats and jackets to room servicepersonnel for use in pizza delivery. Room service waitersand waitresses will wear these garments to deliver pizza.

y They will change to their regular uniforms for otherdeliveries.


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Options available to the General

Manager1. Accept Foods service managers proposal

2. Add an unobtrusive sentence to the bottom of the

promotional brochure indicating that Napoli Pizzais a registered trademark of Hospitality Enterprises

3. Include the Inns name in the brochure, i.e.MarigoldInn's Napoli Pizza.

4. Establish a Napoli Pizza as a separate, visible partof restaurant operations, offering pizza delivery toguest rooms, meeting rooms and the pool as well asseating facilities for guests and consumers in general


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Ethical issues to be considered by

the General Managery Is the proposed marketing program for Napoli Pizza

deceptive?

y Does the proposed marketing program respect guestsright of free consent?


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Conclusiony Ethics is the at the core of business and ethical

dilemmas are faced by employees, owners on a day-

day . We hope we have been able to convey this pointand hence forth you as young manager would be moreappreciate of these ethical dilemmas.


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Ethical Issues in each option1. Deceptive marketing strategy Trying to lure

customers into buying the Pizza under the faade of

a separate operations. Unethical.2. Legally Correct. Ethically wrong.

3. Legally and Ethically Correct.

4. Legally and Ethically Correct.


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Ethical challenges

y Can Tom avoid using the bid information and stillcomply with Marks orders to be the low bidder?

yShould Tom be concerned about using thecompetitors bid information, seeing that it came froma Strong Built employee?

y Does using the information put Tom and/or his

company in jeopardy?y If everybody in the construction industry acts this way,

should Tom?


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Ethical Dilemma in Marketing